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GIA announces the release of a comprehensive global report on Electric Household Appliances markets. The global market for Electric Household Appliances is projected to reach 1.25 billion units by 2018, propelled by developing economies, spearheaded by the Asia Pacific region, emergence of smart appliances, and increasing demand for energy-efficient products. While replacement demand, niche product developments, and revamped old product lines, are the major factors driving growth in the developed markets, rising incomes and living standards influence growth in the developing countries.

Electric Household Appliances: A Global Strategic Business Report

San Jose, California (PRWEB)November 19, 2012

Follow us on LinkedIn – The global electric household appliances market is highly sensitive to macroeconomic factors such as GDP growth and per capital incomes. Consumer preference also plays a key role in determining sales, as factors, such as price, quality, features, and brands are unique to each geographic region and demographic segment. The global electric household appliances market is on a steady growth trajectory, spurred by the robust demand from emerging markets in Asia-Pacific, Latin America, and the Middle East. Healthy demand for major household appliances such as refrigerators, air conditioners, dishwashers, washing machines, food choppers, food processors, and electric ranges are also providing momentum to the market.

The global electrical household appliances sector suffered the impact of the global economic recession during 2008 and 2009 with steep fall in sales and profit margins registered across US, Canada, Europe, and Japan during the period. However, emerging economies in Asia Pacific, Latin America and the Middle East & Africa regions displayed resilience to recession, providing respite to global appliance manufacturers. Although the industry bounced back from the recessionary trough in 2010, the fiscal uncertainty in US, and sovereign debt crisis and subsequent austerity in Europe are weakening consumer confidence levels in these regions to a significant extent. The prevailing volatility in the housing and construction sector also continues to impact sales of household appliances in Western economies. This is reflected in the lower levels of product innovation in the US consumer appliances market. However, the downturn is stimulating the growth of the used goods market in these regions. The gradual recovery of the residential construction in the US is expected to spur demand for appliances, such as dishwasher, refrigerator, oven, washing, and electric ranges.

On the other hand, robust demand from developing economies is sheltering the global electric appliances market. Driven by increasing per capita incomes and better living standards, emerging markets, particularly Asia-Pacific led by China and India, are the growth engines for the global electrical household appliances market. Owing to the slower demand in US and Europe, leading companies in the these regions are intensifying their penetration in emerging markets, such as China, India, and Brazil through subsidiaries, joint ventures, and mergers and acquisitions of local companies.

While Europe and the US are expected to remain the leading manufacturers of appliances as a result of their technical expertise, the global production hub is moving towards Asian economies, such as China, where domestic manufacturers secure a competitive edge through cheap labor and favorable currency exchange rates. However, manufacturers in developing countries also face the challenge of complying with the stringent standards in export markets, such as the UL/ETL norms in US, CFA regulations in Canada, and EU directives in Europe.

Appliances manufacturers across the world are vying to produce newer series of appliances to match the demand for cost-efficiency and low energy conservation from increasing eco-conscious consumers. Multiple pressure points from consumers, government bodies, and environmental agencies are pushing manufacturers to achieve energy efficiency certification, such as ENERGY STAR, for their electrical appliances. The electrical household appliances market is also witnessing an increasing propensity for ‘smart’ technology in appliances, such as refrigerators, freezers, and dishwashers among others, whereby the smart appliance is linked to a global Smart Grid ecosystem. Manufacturers and merchandisers, alike, are banking on innovations in technology and features for products, such as refrigerators and air conditioners, to lure consumers to appliance stores. The fast-expanding online retail market has also caught the attention of appliance manufacturers and vendors alike with major participants rushing to establish their brands and grab a slice of the new sales channel.

Asia-Pacific region, led by India and China, represents the largest market worldwide, as stated by the new market research report on Electric Household Appliances. The region is also slated to outrace other geographic markets with a projected CAGR of 4.8% over the analysis period. In terms of segments, refrigerators, washing machines, and vacuum cleaners, constitute the largest segments within the major electric household appliances market, while refrigerators and room air conditioners are forecast to provide growth impetus to the market. Electric irons and coffee makers constitute the largest segments in the global small electric household appliances market, while food processors, food choppers, and mixers are expected to drive market growth.

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.